Opinion: GST top-up cash is not a plan it’s merely political smoke-and-mirrors

A robust exchange between this columnist and Federal Labor leader Bill Shorten sparked some chatter in political and media circles last week.

The subject was that great conundrum wrapped in a riddle — WA’s unfair share of the GST — and the rhetoric that spews from the mouths of Bill Shorten and Malcolm Turnbull whenever they cross the border with more money and no permanent solutions.

Shorten used a TAFE campus in Northbridge to announce his latest “plan” to give West Australians what is “rightly theirs” and committed a further $400 million on top of his previous GST top-up of $1.6 billion in August.

“We believe it is long overdue for WA to receive its fair share, specifically following discussions with the McGowan Government,” Shorten proclaimed.

But then Shorten stretched his smoke-and-mirrors on GST compensation by saying the extra top-up money was part of a “good idea” Labor had devised after becoming aware of the change in “GST relativities” for WA.

“It’s not a good idea, it’s just voter bribery,” was my verbal reaction before posing a question. “Isn’t it just voter bribery?”

Shorten: I’ll just finish ... do you mind if I finish your colleague’s question?

Adshead: It’s the same question. It’s just voter bribery, isn’t it? It’s not a great idea, it’s just handing out money to get yourself votes?

Seven News reporter Geof Parry then echoed the bribery line of questioning.

Shorten: Well, you can’t have it both ways, gentlemen. You can’t say WA is missing out and then when Labor does something say that it’s wrong.

Adshead: You’re not going to fix it. You’re going to temporarily bribe the voters. You and Turnbull?

Shorten: No.

Adshead: That’s what West Australians think.

Shorten: Thanks for that comment. I’ll take that as a comment.

He might have taken it as a comment, but plenty of West Australians see it as the truth.

There is no political will from either Labor or Liberal to fix the broken GST system and that means with an election due next year, both sides will unashamedly allocate billions to buy your support.

Instead of being up front about that, Shorten and Turnbull keep upping the ante in the bidding war. The only plan is to win in WA without risking a fight in other States over the fairness of GST distribution.

By acknowledging that the “GST relativities” had changed since August, Shorten only reinforced what all West Australians know. We suffer from a fickle GST funding regime that only gets solved through serious structural changes.

When Shorten gloated during the news conference about the fact that the Liberals had copied Labor’s first GST top-up commitment, he laid bare the cynical politics behind the band-aid solution on offer from both sides.

“Of course the Liberals have copied us and that’s OK,” he said. “That’s how the politics should work.”

No, Federal Opposition Leader, it’s not.

The politics should work to find a permanent answer. Both sides should come together to ensure the other States sharing the GST pie accept things have to change. Any politician can rock up to a media event and promise another fistful of dollars, which brings me back to the robust exchange.

“I accept what has been happening isn’t fair,” Shorten said. “But you can’t complain when Labor actually has a plan, can you?”

Adshead: You’ve actually got no vision towards fixing the GST system.

Shorten: When you talk about whether Labor should have a plan, well, yes, we should. I accept there are different ways to fix a problem and if you are disciples of one solution rather than another, then you’re entitled to your opinion.

According to the Chamber of Commerce and Industry, the overwhelming majority of WA voters have the same opinion when it comes to the GST controversy. More than 80 per cent agree the system is unfair and rank the need to fix it properly — rather than just finding money from elsewhere to placate West Australians before an election — as the second most important issue behind the cost of living.

“This is a galvanising issue in WA,” CCI chief economist Rick Newnham said. “West Australians expect our politicians to be doing everything they can to fix the GST because the vast majority do not support the current system.”

Premier Mark McGowan has to choose his words carefully when his Federal leader is in town talking about GST compensation because he knows Shorten has no intention of taking up the fight for real change.

Besides, a State Government drowning in debt is happy to take the money and run, no matter which side of politics it comes from.

“For years we were ignored,” McGowan said at the Shorten news conference. “Now, we’re getting the attention we deserve. It recognises the fact that the GST has not worked well for our State.”

But no amount of top-ups, hand-outs or GST guilt money is going to change the failing formula. Instead, we’re guaranteed more glib Federal politicking when the leaders come to town with sacks of money to buy your votes.